on 16 Aug 23
Categories: Finance & Budget
High interest rates mean consumer affordability is impacted, which will lead to fewer buyers who can afford to purchase property. With a shrinking buyer pool, sellers will need to adopt different marketing strategies to ensure that their property sells.
According to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, depending on how high demand is for the area, sellers might need to adjust prices downwards to get their homes sold. “Selling a home when interest rates are high is challenging because the pool of potential buyers is much smaller. This means that the home needs to be competitively priced and well presented to stand out in a crowded market,” he advises.
To help sellers achieve a timeous sale while interest rates remain high, RE/MAX of Southern Africa shares a few tips:
When interest rates are high, there is increased risk around buyers who require home finance to fund the purchase. Nothing is more upsetting than accepting an offer only to find out that the buyer cannot qualify for the required home finance. To avoid this disappointment and unnecessary delays, tell your real estate professional to only allow viewing appointments for buyers who are already pre-qualified.
Buyers who can afford to purchase when interest rates are high are generally spoilt for choice. This means that sellers will need to make their home as appealing as possible to stand out from other similar homes in the market. Trust the advice of your agent in this regard. Whether they advise that you repaint a room, declutter a space, or even ask you to drop the asking price, following their advice could lead to a much smoother sale.
When interest rates are high, more homes tend to hit the market which means that real estate agents start to juggle many sellers at once. To make sure your real estate agent stays focused and motivated on the sale of your home, sign a sole mandate with them. Many sellers have the misconception that the more agents you have marketing your home, the better your chances it will sell. In fact, having a property listed with multiple agents will decrease an agent’s accountability and therefore their motivation to sell the home.
As a final word of advice, Goslett reminds sellers that each market is unique, and will require its own set of selling strategies depending on where the home is located. “Work with a reliable local real estate agent who can tailor your approach based on your specific circumstances and unique market trends,” he concludes.